The HR department is one of the most important departments in any organization because it touches on the bottom line of organizational operations. At the same time, the HR department is among those that have unending appetite for limited organizational resources. Going by the recent evidence, organizations do not shy away from investing in people and programs because they both affect the bottom line of organizational operation. Therefore, it is important to have the right metric to assess the performance of the HR department to ensure that these resources turn into tangible results. The best way to measure the performance of the HR department is through the labor turnover. The HR department is mainly involved in handing labor issues in the organization. It carries out job evaluation, hires, promotes, appraises and fires the employee. The main work of the HR department is the welfare of the workers. According to Brian, Mark, and Ulrich (2001) this means that the performance of the department should be measured on the basis of the welfare of the employees.